S&P 500 falls on pressure from retail stocks, weak jobless claims
On Friday, Citizens JMP reaffirmed its Market Outperform rating and $155.00 price target for Reddit (NYSE: RDDT), despite observing a deceleration in app engagement. With a market capitalization of $18.45 billion and an impressive gross profit margin of 90.49%, Reddit maintains a strong financial position according to InvestingPro data. According to the firm, global time spent in the Reddit app saw a slight decline of one percentage point year-over-year in March, registering an 8.8% increase. In a more pronounced trend, time spent by U.S. users in the app decelerated by 240 basis points (bps).
The analysis also indicated a slowdown in daily active users (DAUs) on a global scale, with growth decelerating by 230 bps to a year-over-year increase of 12.8%. U.S. app DAUs experienced a similar trend, with growth slowing by 260 bps to 8.0% year-over-year.
In contrast to the app's performance, Reddit's global web traffic exhibited positive momentum, accelerating by 50 bps to a 23.5% year-over-year increase. Likewise, U.S. web traffic saw a boost, with an 80 bps acceleration leading to an 18.4% year-over-year growth.
The firm's analysis was juxtaposed with data from Semrush, which suggested that search traffic for Reddit has plateaued in 2025. Despite the mixed signals from different usage metrics, Citizens JMP maintains its positive outlook on Reddit's stock with a steady price target of $155.00. Analyst targets range from $75 to $235, with revenue expected to grow 39% this year. For deeper insights into Reddit's valuation and growth prospects, InvestingPro offers 15+ additional investment tips and comprehensive financial analysis.
In other recent news, Reddit's financial outlook has seen several adjustments from various analyst firms. Piper Sandler has lowered its price target for Reddit shares from $220 to $140, while maintaining an Overweight rating. The firm anticipates Reddit's first-quarter revenue to be at the high end of the $360-370 million range, with an estimated EBITDA of $89.8 million. Baird also revised its price target for Reddit, decreasing it from $185 to $125, citing a conservative outlook on the company's new product initiatives and potential revenue sources. Meanwhile, Citizens JMP reduced its price target to $155 from $200, though it continues to rate the stock as Market Outperform. The firm bases its valuation on a projected EBITDA of $761 million for 2026, suggesting confidence in Reddit's growth potential. In contrast, Needham has maintained its Buy rating and $220 price target, emphasizing Reddit's high revenue growth projections and profitability estimates for 2025 and 2026. These developments reflect a diverse range of perspectives on Reddit's future performance and financial health.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.